Taking a Red Pen to Financials for Valuation Purposes
Financial statements are an important source of data for valuing a business. But they tell only part of the story. An accurate business valuation […]
Do Valuation Discounts Apply to Compulsory Shareholder Buyouts?
Valuation discounts for lack of control and marketability are major points of contention when companies or controlling shareholders are required to buy out shareholders […]
Looking Beyond the Financials for Clues to a Business’s Value
An experienced business valuation professional considers more than just a company’s financial statements when quantifying its value. The professional conducts detailed interviews and asks […]
Rx for Valuing a Distressed Business
Over the last two years, market conditions — from cost increases and forced shutdowns to shortages of labor and supplies — have taken their […]
Valuing a Business for Divorce
When divorcing spouses own a private business interest, it complicates the settlement process. The value of a business isn’t necessarily as straightforward as the values of other […]
Don’t Discount the Key Person Discount
In the fourth quarter of 2021, CEO resignations were up 16% over the prior year, according to executive outplacement firm Challenger, Gray & Christmas. Recent and announced […]
The Cost Approach to Valuing a Business
The cost (or asset-based) approach to valuing a business focuses on the balance sheet. This financial statement reports “book values” for the company’s assets […]
When Subsequent Events Count
The value of a business interest is valid as of a specific date. The effective date is a critical cutoff point because events that occur after that […]
What Factors into the Cost of Capital?
Valuation experts often use discounted cash flow (DCF) techniques to determine the value of a business or estimate economic losses. A critical input in a DCF model […]
Taking Marketability Discounts on Controlling Interests
In a business valuation context, the term “marketability” refers to the ability to quickly convert property to cash at minimal cost. While publicly traded stocks are readily […]
